 Stock Ideas
for Swing Trading
Robert J. Cote, Jr.
Thirdeyeopentrades
Jun 22, 2006
"Pass the Hot Sauce, the Rand is Cooked"
It has been a long time since
the South African mining companies have been able to benefit
from the rising price of gold in US Dollars while their reported
earnings took a hit because their expenses were priced in Rands.
That time is soon to pass as the Rand is forming an apparent
head and shoulders top. As the Rand declines in value in relation
to the US Dollar, earnings for the South African mining companies
are likely to increase as wages and other expenses are paid in
Rands.
What should a gold stock investor
or trader be doing right now? You may want to do some homework
and develop a list for yourself of mining companies with significant
operations in South Africa. Harmony Mining (HMY) would be a good
place to begin with as they are South Africa's 3rd largest gold
producer as well as being the world's 6th largest gold producer.
(Click on image to
enlarge)
Another interesting development
is that the gold stocks are trying to make a go at getting a
rally started. Be careful not to jump the gun unless you're an
experienced trader with intraday internet access. We, at Thirdeyeopentrades,
are waiting for a sector buy signal before putting our longer
term capital back to work. Once the $XAU:$GOLD ratio crosses
that red line we'll be back in the game.
(Click on image to
enlarge)
Jun 21, 2006
Robert J. Cote, Jr.
email:
thirdeyeopentrades@yahoo.com
website: www.thirdeyeopentrades.com
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